5 replies to this topic

[Rogerdodger]

This is so entertaining. Is it your grandpa's market?

 

What. Just. Happened?

The S&P 500, the broadest measure of the stock market, tumbled Wednesday afternoon, starting just after 2 pm ET. It was on pace to hit a record — its first in nearly two years.

Then, the bottom fell out. Within minutes, the index was down a half a percentage point. Within an hour, it had fallen more than 1%, and it ended the day down nearly 1.5%. The Dow, which had been up nearly 100 points, ended the day almost 500 points lower.What. Just. Happened?

 

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I'm headed to the craps table to get a free $200 beer! 

Edited by Rogerdodger, 21 December 2023 - 01:05 AM.

[Rogerdodger]

Low trading volume can also mean high volatility.

On December 15, 2022, the Dow plunged 765 points for no real reason at all. Some market analysts cited “recession fears,” which ended up unfounded. And on December 30, 2019, the Dow sank 200 points. CNN Business’ story noted the day was “relatively devoid of news.”

But the mother of all end-of-year market chaos moments happened in a 10-day stretch to end 2018, when the Dow sank 4,000 points before staging one of the best days on record — a 1,086-point gain — before a roller coaster day the next trading day, which nearly wiped out all those gains.

So, take a deep breath … and brace for some bumps in the road toward the end of the year.

[12SPX]

Exactly, to many people and indications that everyone is hoping for a massive rally so will likely be a very interesting end to the year!!!

[Douglas]

I suspect what happened was trading algorithms automatically tighten their volatility based stops (just like the Chandelier ones that I use) when there is virtually no volatility which there hasn't been in this astounding rally until the stops are as snug as jeans on a teen.  The big houses can see these stops and when there's enough of them and they're really tight,  the big houses with a wink and a nod get short and then run the stops by selling size, and away we go into a stop hitting air pocket to the downside.  No bad news is needed, just very deep pockets, inside information and relatively little scruples .  Welcome to the world of el machina.

 

Regards,

Douglas

[slupert]

PCE, should give us an easy up day, Powell already announced it n his speach. lol

[pdx5]

Inflation news is holding the market up. Latest inflation numbers below 3%. I think prices are already 20%+ higher for items compared to January 2021. While wages have not kept up with inflation. Even if wages were to advance 20%, depending on your tax bracket, 10 to 30% of your raise goes back to income taxes.